Predatory Lending in Russia: Survey Data

Abstract

In this paper, the author explores the problem of the expansion of predatory consumer lending practices in Russian commercial banks. The relevance of the problem of predatory lending is due to the highly negative consequences of its spread, which include an increase in social inequality, excessive growth of the debt burden of the population, the slowdown of national economic growth, the growth of social tensions. The article presents the results of a survey confirming the widespread practices of unscrupulous lending in the practice of commercial banks. The author hypothesizes that the main reasons for the spread of predatory lending include the widespread use of bank staff motivation systems, focused on the fulfilment of the sales plan for individual bank products, and the rigid management characteristic of Russian management. The article offers recommendations for counteracting the spread of predatory lending practices. The article may be helpful for researchers interested in the problems of bank lending, bank employees, employees of the Central Bank and other supervisory bodies.